Highlights. American consumers spent nearly $1.154 trillion* online in 2022, up 10.3% year-over-year (YoY).
- In the first ten (10) months of 2023, online consumers spent a monthly average of $100.1 billion or 14.6% of all retail spending nationwide.
- E-commerce spending in the U.S. increased 35.2% in 2020.
- The monthly record for online purchases as a percentage of total retail sales dollars was 17.1% in April 2020.
*Financial values have not been seasonally adjusted; this report does not use seasonally adjusted values unless noted otherwise.
2023 Online Sales Growth
U.S. e-commerce sales are projected to total $1.255 trillion in 2023.
- E-commerce sales accounted for an estimated 5.53% higher share of total retail sales than in 2022.
- In the third fiscal quarter (Q3) of 2023, U.S. e-commerce sales totaled $271.7 billion, up 7.75% YoY from 2022 Q3.
- E-commerce accounted for 14.9% of retail sales in 2023 Q3, up 5.62% YoY.
- Global e-commerce sales totaled an estimated $6.31 trillion in 2023.
Online Sales Growth in the 2020s
E-commerce revenue not only increased overall in the first 46 months of the 2020s, but the growth rate is also far above the currency inflation rate during the same period.
- From January 2020 to October 2023, month-to-month revenue growth averaged 1.32%.
- During the same period, the month-to-month value of the U.S. dollar averaged a 0.37% rate of increase.
- In the first 46 months of the 2020s, month-to-month e-commerce revenue growth outpaced currency inflation by 257%.
- When expressed as a percentage of nationwide retail sales revenue (i.e. market share), month-to-month e-commerce sales growth averaged a 0.58% rate of increase.
- In the fourth quarter of 2022, the traditional winter holiday shopping season, e-commerce sales increased 20.2%.
- By October 2023, the e-commerce share of monthly retail sales dollars declined 10.5% from its peak in April 2020.
- In 2022, total seasonally-adjusted e-commerce sales dollars increased 10.0%.
| Month | Total E-commerce Sales
(billions) |
YoY Growth |
|---|---|---|
| Oct 2023 | $106.8 | 10.8% |
| Sep 2023 | $98.7 | 7.3% |
| Aug 2023 | $104.7 | 8.0% |
| Jul 2023 | $103.4 | 11.1% |
| Jun 2023 | $100.1 | 9.3% |
| May 2023 | $105.8 | 10.8% |
| Apr 2023 | $97.5 | 6.1% |
| Mar 2023 | $100.4 | 7.4% |
| Feb 2023 | $89.2 | 8.5% |
| Jan 2023 | $94.8 | 8.5% |
| Dec 2022 | $121.3 | 6.5% |
| Nov 2022 | $111.9 | 6.8% |
| Oct 2022 | $96.4 | 8.6% |
| Sep 2022 | $92.0 | 11.9% |
| Aug 2022 | $96.9 | 12.3% |
| Jul 2022 | $93.0 | 15.6% |
| Jun 2022 | $91.6 | 7.37% |
| May 2022 | $95.5 | 14.0% |
| Apr 2022 | $91.9 | 7.10% |
| Mar 2022 | $93.5 | 8.54% |
| Feb 2022 | $82.2 | 14.6% |
| Jan 2022 | $87.3 | 13.3% |
Online Sales Growth in the 21st Century
Most of the largest gains in e-commerce revenue and market share happened in the 21st century.
- From 2000 to 2020, e-commerce spending increased at an average annual rate of 34.0%.
- In 2000, U.S. consumers spent $113.79 billion on e-commerce.
- From 2000 to 2010, annual e-commerce spending increased 131.6% to $263.488 billion.
- Also in 2000, e-commerce sales dollars accounted for 3.46% of nationwide retail sales revenue.
- Between 2000 and 2010, the e-commerce market share increased 77.7%.
- From 2010 to 2020, annual e-commerce spending increased 237.2% to $888.502 billion.
- Between 2010 and 2020, the e-commerce market share increased 132.3%.
| Year | E-commerce Sales (billions) |
Growth YoY |
|---|---|---|
| 2022 | $1,154 | 10.3% |
| 2021 | $1,046 | 17.8% |
| 2020 | $889 | 35.2% |
| 2019 | $657 | 12.6% |
| 2018 | $584 | 11.3% |
| 2017 | $525 | 12.3% |
| 2016 | $467 | 11.5% |
| 2015 | $419 | 11.2% |
| 2014 | $377 | 8.88% |
| 2013 | $346 | 5.33% |
| 2012 | $329 | 11.5% |
| 2011 | $295 | 11.8% |
| 2010 | $263 | 11.8% |
| 2009 | $236 | 2.78% |
| 2008 | $229 | 2.49% |
| 2007 | $224 | 10.6% |
| 2006 | $202 | 15.0% |
| 2005 | $176 | 14.1% |
| 2004 | $154 | 14.8% |
| 2003 | $134 | 9.89% |
| 2002 | $122 | 6.51% |
| 2001 | $115 | 0.84% |
| 2000 | $114 | 20.7% |
Projected Online Sales Growth
Young consumers are generally more likely to shop online.
- If current trends continue, U.S. e-commerce revenue will total $1.657 trillion in 2025.
- Likewise, current trends indicate the e-commerce market share would run as high as 16.6%.
- Some projections indicate total online sales revenue will increase 13.5% per year between 2023 and 2028.
- Consumers born between the years 1946 and 1964 are 33.3% more likely to shop in-store compared to all shoppers.
- Compared to all shoppers, those born between 1980 and 1994 are 14.3% more likely to shop online.
- Consumers born between 1995 and 2003 are 33.3% more likely to shop using a hybrid method (in-store and online).
Historical Online Sales Growth
While multiple media outlets consider 1994 the birth year of e-commerce, the U.S. Census Bureau did not begin tracking online sales until 2000, when it combined e-commerce with mail-order sales.
- 1997 U.S. e-commerce sales totaled an estimated $20.8 billion.
- From 1995 to 1997, estimated U.S. annual e-commerce sales revenue combined with mail-order revenue totaled $80 billion.
- Between the 1995-1997 period and 2000, combined total e-commerce sales and mail-order revenue increased at an average annual rate of 8.44%.
- Between 1999 and 2000, the combined e-commerce and mail order revenue increased 20.7%.
| Year | Total Sales Revenue (billions) |
YoY Change |
|---|---|---|
| 2021 | $5,211 | 22.7% |
| 2020 | $4,248 | 26.8% |
| 2019 | $3,351 | 12.4% |
| 2018 | $2,982 | 25.2% |
| 2017 | $2,382 | 29.1% |
| 2016 | $1,845 | 19.2% |
| 2015 | $1,548 | 15.9% |
Global Online Sales Growth
In the early years of e-commerce, U.S. sales accounted for an estimated 80% of global e-commerce revenue.
- In 2021, global online retail sales totaled $5.211 trillion.
- 2021 global online retail sales dollars increased 22.7% YoY.
- 1997 worldwide e-commerce sales totaled an estimated $26 billion.
- Between 1997 and 2014, global e-commerce increased 5,038.5% to $1.336 trillion.
- Projections indicate that global online retail sales will total $8.148 trillion by 2026.
- If projections are correct, e-commerce sales revenue will increase at an annual average rate of 11.3%.
Sources
- United States Census Bureau, Monthly Retail Trade Reports
- U.S. Bureau of Labor Statistics, Consumer Price Index (CPI) Inflation Calculator
- Money, 8 Amazing Things People Said When Online Shopping Was Born 20 Years Ago
- Mississippi Department of Archives & History
- National Retail Federation
- Statista, E-commerce